UPDATE 1-US Air Force disciplines 5 for Thunderbird contract

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By Andrea Shalal-Esa

WASHINGTON, April 17 (Reuters) - Air Force Secretary Michael Wynne disciplined a top Pentagon official and four others involved with a $50 million Thunderbirds air show contract after an investigation showed the deal was "tainted with improper influence," the service said on Thursday.

The Thunderbirds act as goodwill ambassadors for the Air Force, performing precise aerial maneuvers at U.S. shows.

Wynne, struggling to rebuild the Air Force's image after a major procurement scandal in 2004, took unspecified administrative action against Maj. Gen. Stephen Goldfein, vice director of the Pentagon's Joint Staff since February 2007.

An Air Force spokesman declined to say how Goldfein was disciplined, saying punishment could range from a verbal reprimand to a formal letter of admonishment. The four airmen in addition to Goldfein were at the rank of colonel or below.

Goldfein led the Air Warfare Center at Nellis Air Force Base when the Thunderbirds contract was awarded to Strategic Message Solutions, a Pennsylvania company. He declined comment.

Wynne's action came after an investigation by the Defense Department's inspector general found the contract was "tainted with improper influence, irregular contracting practices and preferential treatment for the winning company."

The report was another setback for the Air Force, which has sought to become more transparent since a huge aircraft procurement scandal several years ago. The scandal prompted the resignation of Wynne's predecessor, James Roche.